Legislature(1995 - 1996)
04/19/1996 03:45 PM Senate RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE RESOURCES COMMITTEE
April 19, 1996
3:45 p.m.
MEMBERS PRESENT
Senator Loren Leman, Chairman
Senator Drue Pearce, Vice Chairman
Senator Steve Frank
Senator Robin Taylor
Senator Georgianna Lincoln
MEMBERS ABSENT
Senator Rick Halford
Senator Lyman Hoffman
COMMITTEE CALENDAR
-- CONFIRMATION HEARING ON BOARD OF GAME APPOINTEES: ANN
RUGGLES, GREG ROCZICKA, VIC VAN BALLENBERGHE
CS FOR HOUSE BILL NO. 388(RES) am
"An Act revising laws relating to oil and gas leasing as related to
land previously the subject of a written best interest finding;
amending provisions setting out exceptions to sales, leases, or
other disposals for which a revised written best interest finding
is not required; encouraging annual offer of land for oil and gas
leases if the land was the subject of a best interest finding; and
modifying the statement of purpose in the Alaska Land Act as it
applies to oil and gas leasing to provide for annual lease sales."
PREVIOUS SENATE COMMITTEE ACTION
HB 338 - See Joint Senate/House State Affairs Committee minutes
dated 10/5/95 and 1/23/96.
WITNESS REGISTER
Loren Croxton
P.O. Box 1410
Petersburg, AK 99833
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Bill Folsom
Box 2408
Palmer, AK 99645
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Roy Burkhart
Box 204
Willow, AK 99688
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Leonard Haire
Box 879030
Wasilla, AK 99687
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Lynn Levengood
1008 16th Ave.
Fairbanks, AK 99701
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Bonnie Williams
1335 Sunny Slope Road
Fairbanks, AK 99709
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Tom Scarborough
1676 Taroka Drive
Fairbanks, AK 99709
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
David Williams
1335 Sunny Slope Road
Fairbanks, AK 99709
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Katherine Richardson
P.O. Box 80766
Fairbanks, AK 99708
POSITION STATEMENT: Supports appointment of Ann Ruggles to the
Board of Game
Ralph Seekins, President
Alaska Wildlife Conservation Association
1625 Old Steese Highway
Fairbanks, AK 99701
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Jack Stoebauer
18713 Upper Skyline Drive
Eagle River, AK 99577
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Leo Keeler
Friends of McNeil River
P.O. Box 190647
Anchorage, AK 99519
POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Stephan Wells
P.O. Box 202022
Anchorage, AK 99520
POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Nicole Di Padua
4520 Edinburgh Drive
Anchorage, AK 99515
POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Matt Singer
Alaska Wildlife Alliance
P.O. Box 202022
Anchorage, AK 99520
POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Dick Bishop, Executive Director
Alaska Outdoor Council
P.O. Box 73902
Fairbanks, AK 99707
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and
Vick Van Ballenberghe to the Board of Game
Sarah Hannan
7348 North Douglas Highway
Juneau, AK 99801
POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Joel Bennett
Juneau, AK
POSITION STATEMENT: Supports confirmations of Ann Ruggles, Vic
Van Ballenberghe & Greg Roczicka to the Board
of Game
Mike Tinker
P.O. Box 25197
Ester, AK 99725
POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic
Van Ballenberghe to the Board of Game
Representative Norman Rokeberg
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of HB 388
Pat Foley
Alaska Oil & Gas Association
121 W. Fireweed Lane
Anchorage, AK 99503
POSITION STATEMENT: Testified in support of CSHB 388(RES) am
Bill Stamps
Alaska Support Industry Alliance
P.O. Box 130
Kenai, AK 99611
POSITION STATEMENT: Testified in support of CSHB 388(RES) am
George Findling
ARCO Alaska, Inc.
P.O. Box 100360
Anchorage, AK 99516
POSITION STATEMENT: Testified in support of CSHB 388(RES) am
Ken Boyd, Director
Division of Oil & Gas
Department of Natural Resources
3601 C St., Suite 1380
Anchorage, AK 99503-5948
POSITION STATEMENT: Testified in support of CSHB 388(RES) am
Kevin Tabler, Land Manager
Unocal Corporation
909 W. 9th Ave.
Anchorage, AK 99501
POSITION STATEMENT: Testified in support of CSHB 388(RES) am
ACTION NARRATIVE
TAPE 96-59, SIDE A
Number 001
CHAIRMAN LEMAN called the Senate Resources Committee meeting to
order at 3:45 p.m. He stated the first order of business would be
confirmation hearings on the governor's appointees to the Board of
Game, and he noted the presence of Larry Holmes, Chairman of the
Board of Game.
ANN RUGGLES , making her presentation to the committee via the
teleconference network from Fairbanks, stated she is by training
both an anthropologist and a wildlife biologist. Her income is
derived by teaching biology at the University of Alaska Fairbanks.
Ms. Ruggles said her interest in serving on the Board of Game in
the past and now is that she is keenly interested in the interface
between science and policy. She recognizes that science does not
have all the answers. She said society, when it decides it would
like something from a system, needs to rely upon science, but then
it must also turn to sociological aspects, legal aspects, political
aspects, ethics and culture to determine how we are actually
finally going to manage wildlife, she said.
Number 053
CHAIRMAN LEMAN pointed out he has received many negative messages
concerning her membership on the board, and he asked if she could
expand on why she has been so controversial, and how she sees
herself serving and being able to deal with the considerable number
of the public who may think otherwise. MS. RUGGLES said she is not
sure why she would be termed "controversial" although she is sure
that there are people who do not share a value system with her,
people who have different goals than she may have, and people who
may wish to see a Board of Game that is maybe more narrowly focused
and gives limited representation to the different values which
exist in this state. While serving on the board, she has been a
proponent of conservation of wildlife population.
Number 122
SENATOR LINCOLN noted Ms. Ruggles participated in the Alaska wolf
summit in 1993, and she asked if she would explain what her
participation was and her position during that summit. MS. RUGGLES
explained she was invited to participate because she had been a
member of the wolf management planning team and she was there to
speak for them. She said the Board of Game determined that the
state needs to be managing intensively, that normal hunting and
trapping will not resolve the issue, that we do need to turn to
looking at wolf control.
CHAIRMAN LEMAN asked for Ms. Ruggles philosophy of hunting. MS.
RUGGLES responded that hunting is a legitimate activity, one that
many people participate in and one that is certainly right and
proper.
CHAIRMAN LEMAN noted a letter was received from the Alaska Wildlife
Alliance stating they believe that the Board of Game's structure
and process needs serious reform, that the legal mandate of the
board needs to be changed. He asked Ms. Ruggles if she agreed with
that assessment. MS. RUGGLES responded that she does not believe
the Board of Game's process or the Board of Game's mandate is
posing problems. She believes it is an excellent process, and it
is a way by which the people in Alaska can have a voice in how a
public resource is going to be managed.
Number 200
CHAIRMAN LEMAN thanked Ms. Ruggles for her participation, and then
invited Greg Roczicka to make his presentation to the committee.
GREG ROCZICKA said he has strongly advocated that if people have
complaints or problems with management systems, they ought to be
involved, so in December he submitted his name to serve on the
board. He feels he brings a strong and positive background to the
board having for the last years worked on the front lines of
conflict and controversy regarding game management issues, working
between the village governments and the state and federal
governments.
CHAIRMAN LEMAN asked Mr. Roczicka if he thought his background in
being associated with the Associated Village Council Presidents
could create conflicts or if it would be an asset. MR. ROCZICKA
responded that even in his work with that agency he tries to
maintain an objective view, and he feels he would have no problem
at all separating himself from any advocacy or perception of
advocacy that that organization has in his work with the board. He
added he has participated in the board process over the years, and
when he sat in on his first Board of Game meeting in March, he was
impressed with what he sees to be a real balance on the board that
in many boards in the past was not there.
CHAIRMAN LEMAN thanked Mr. Roczicka for his participation and then
invited Vic Van Ballenberghe to make his presentation to the
committee.
Number 282
VIC VAN BALLENBERGHE said the question of why a person would want
to be on the Board of Game is commonly asked. Despite the fact
that being on the board is time consuming and stressful, and
despite that no matter what action the board takes, a significant
segment of the public seems to be disappointed, there are rewards.
He feels he can contribute something to the board. He feels he is
well qualified to serve on the board both professionally and
personally.
Mr. Van Ballenberghe said he is a professional wildlife biologist
with about 30 years experience. He came to Alaska in 1974 and
began working for the Alaska Department of Fish & Game. He left
that job in 1980 to take a position as a research biologist with
the Forest Service. In that capacity, he has worked mainly on
researching moose and wolves. He has been an avid observer of
wildlife and wildlife issues and the processes that relate to
wildlife management since he has been in the state.
On a personal level, he also has a strong and lifelong interest in
wildlife issues having grown up on a farm and being exposed to
hunting early on. He said he has been a hunter, a trapper, and a
fisherman all of his life. As a hunter, he has a keen interest in
trying to relate to other hunters, and he thinks he understands
what hunters desire in the way of wildlife and wildlife management
in the state.
Mr. Van Ballenberghe noted that he served a previous term on the
board from 1985 to 1988, and that they grappled with many of the
same issues that are around today. He feels he learned on the
board during those years, and he admitted that if he had to do some
of the things over again, he would do them a little differently.
Mr. Van Ballenberghe said wildlife management issues are
contentious in the state of Alaska at this point in time, and he
feels that progress can be made toward healing some of the riffs
that have occurred as a result of the contentious debate, and he
would like to contribute to doing that. He thinks there is middle
ground on many of these issues, and a consensus can be worked out.
Number 345
SENATOR LINCOLN said she has received letters questioning whether
Mr. Van Ballenberghe would be able to differentiate between his
position in the federal level versus the state's interest, and she
asked if he thinks with game issues he could objectively remove
himself as a federal employee and look at it as in the best
interest of the state. MR. VAN BALLENBERGHE replied that he thinks
he can and he thinks he did in his previous term on the board in
which he served in exactly the same capacity. During that three-
year period when issues such as the Tongass National Forest came
up, he abstained from voting and those abstentions numbered only
three or four. He said he would adopt the same approach this time
around the appearance of conflict of interest by abstaining on
those very few occasions when there are proposals that relate to
forest service land.
SENATOR LINCOLN asked if he left the Alaska Department of Fish &
Game on good terms. MR. VAN BALLENBERGHE responded that he did,
and that he left that job because he felt the job with the Forest
Service was more suited to his interests--the opportunity to do
research on moose and wolves.
SENATOR LINCOLN asked if as a scientist, could he set all of this
science aside and just use good old common sense. MR. VAN
BALLENBERGHE said he could, and he added there are times when you
have to look at the art as well as the science of wildlife
management and come to some decision. Many of the management
issues are in part based on science, but also in part based on a
lot of other human considerations.
SENATOR LINCOLN asked if he thought he could represent a balance
between the rural, bush and urban areas of the state, as well as
what he thinks hunters desire in wildlife management in the state.
MR. VAN BALLENBERGHE said he thinks hunters desire a lot of
opportunity to hunt and that is very clear with some of the issues
that have come forth very recently before the Legislature with
regard to intensive management, etc., and he thinks that spawned as
a result of dissatisfaction with the opportunity and the ability to
hunt. He also believes he has a good understanding of rural and
bush concerns in addition to urban concerns, and that he can
represent a balance between them.
CHAIRMAN LEMAN noted he received letters and comments identifying
Mr. Van Ballenberghe as controversial, and he asked if he knew why
they might be targeting him. MR. VAN BALLENBERGHE responded that
he doesn't consider himself to be controversial; he considers
himself to be pretty middle of the road on wildlife issues. In his
past term on the board, there were numerous instances in which he
supported hunting and hunters, and he thinks his current view is
strongly supportive of hunting and hunters.
Number 469
CHAIRMAN LEMAN opened the confirmation hearing to public comment.
LOREN CROXTON , testifying from Petersburg, said many things have
changed in game management with the encroachment of the federal
bureaucracy, and he thinks it would be an error to appoint a
federal employee to the game board at this point in time. He
thinks at least the perception of conflict would be most difficult
for Mr. Van Ballenberghe. He said Ms. Ruggles is a non consumptive
of the fish and game resources, and while he believes that there is
more than one legitimate use for our game and resources, he thinks
it is time to for her to move on from her seat on the Board of
Game. He suggested that before Mr. Roczicka is confirmed, someone
must point out to him what the Alaska Constitution says and why it
does not allow a priority use.
BILL FOLSOM , testifying from the Mat-Su LIO, stated he is the
current president of the Mat Valley Sportsmen, and although they
haven't had a board meeting relating to these confirmations, all of
the people he has talked to seem to be of the same mind--they are
opposed to the confirmation of both Ann Ruggles and Vic Van
Ballenberghe because they don't believe either one has the proper
philosophy for the sustained use of game for consumptive use. He
thinks some of these philosophies are also causing splits among
hunters using different means of taking of game by causing
regulations that eliminate their hunting methods.
ROY BURKHART , a resident of the Mat-Su, voiced his opposition to
Ann Ruggles' appointment, mainly because she has her mind made up
before the public hearing ever starts. He said if all the game
boards would be like her, there's no point in having the public
input. He is also opposed to Mr. Van Ballenberghe's appointment to
the board. He said if both of these people were appointed, there
would be two biologists on the game board, and the one thing Alaska
is not short of is studies and biologists' studies. He added that
it is important to have people on the game board that will listen,
evaluate the information, and act on the information.
Number 560
LEONARD HAIRE , a 22-year resident of the Mat-Su Valley, stated his
opposition to Ann Ruggles and Mr. Van Ballenberghe. He said every
time there is vote on motorized access, Ms. Ruggles' mind is
already made up, and the same applies to Mr. Van Ballenberghe.
LYNN LEVENGOOD , testifying from Fairbanks, voiced his opposition to
the appointment of Ms. Ruggles because of the way she has voted on
game issues while serving on the board in the past. He is also
opposed to Mr. Van Ballenberghe's appointment because of the his
federal employment and his position on opposing predator control.
BONNIE WILLIAMS of Fairbanks stated her opposition to the
confirmations of Mr. Van Ballenberghe and Ms. Ruggles to the Board
of Game. She said the issues Alaska faces involving game are
highly volatile and controversial. She said we need appointees who
will start at neutral, listen discerningly to all sides, carefully
compile the real facts, and finally reach wise decisions.
TOM SCARBOROUGH of Fairbanks voiced his opposition to the
appointments of Ms. Ruggles and Mr. Van Ballenberghe, because in
his opinion, both of these individuals voted to violate the
intensive management statutes currently on the books.
DAVID WILLIAMS of Fairbanks stated his opposition to the
appointment of Mr. Van Ballenberghe because he believes that as a
federal employee, Mr. Van Ballenberghe cannot fairly represent
Alaskan interests. He is also opposed to the confirmation of Ann
Ruggles because he believes she will only bring discord to the
Board of Game during these times when the board is under attack by
outside sources.
KATHERINE RICHARDSON , testifying from Fairbanks, stated her strong
support for the reappointment of Ann Ruggles to the Board of Game.
She believes Ms. Ruggles takes her seat on the board very seriously
and works very hard. Ms. Ruggles attends the meetings regularly,
and when she is there, she listens to people and gives thoughtful
and constructive comments. She sees Ms. Ruggles as both a
biologist and realist--she is looking to the future as well as the
present.
RALPH SEEKINS , the president of the Alaska Wildlife Conservation
Association testifying from Fairbanks, voiced their opposition to
the confirmations of Ann Ruggles and Mr. Van Ballenberghe. They
don't believe Ms. Ruggles has represented or voted in favor of
consumptive use of wildlife, except when it was a easy vote and her
anti-vote didn't make any difference. She is not an advocate of
hunting by humans, and she does not support the Alaska Constitution
regarding the highest priority of wildlife for consumptive use.
The association opposes Mr. Van Ballenberghe because they believe
that a federal biologist employed by the federal government, whose
department he works for wants to take over the management of fish
and game in the state of Alaska and is already implementing plans
to do so, should not be on the Board of Game.
JACK STOEBAUER , representing the Alaska Boating Association and
testifying from Anchorage in opposition to the confirmations of Ann
Ruggles and Mr. Van Ballenberghe, said they know how these two
handle biological versus social conflicts. He noted that in Game
Unit 28, the Department of Fish & Game recommended to the Board of
Game to increase the harvest of moose in that area. However, Ms.
Ruggles and Mr. Van Ballenberghe argued to remove the most
efficient, safe and environmentally friendly means used by hunters
in that area, which is the air boat.
LEO KEELER , representing Friends of McNeil River and testifying
from Anchorage, stated their support for the confirmations of Ann
Ruggles and Mr. Van Ballenberghe. He said both individuals have
served on the board in the past, and he thinks the average Alaskan
hunter is of the opinion that they have done a good job.
STEPHAN WELLS , testifying from Anchorage, voiced his support for
the confirmations of Ann Ruggles and Mr. Van Ballenberghe. While
he is not a hunter nor does he oppose hunting, he believes non-
consumptive users need specific representation on the board.
However, he does not believe that either Ms. Ruggles or Mr. Van
Ballenberghe fulfills that need because he doesn't consider either
one of them to be primarily interested in non-consumptive use. He
said they have both demonstrated that they are fair-minded
individuals and will at least listen to his point of view along
with those of others.
NICOLE DI PADUA , testifying from Anchorage, stated her support for
the confirmations of Ann Ruggles and Mr. Van Ballenberghe. She
noted she has attended board meetings in Anchorage and Fairbanks,
and the last meeting in Fairbanks presented a more balanced board.
She said the two nominees questioned the individuals testifying in
a intelligent and intensive manner. She believes two nominees with
degrees in wildlife management is a big plus for the board.
MATT SINGER , representing the Alaska Wildlife Alliance and
testifying from Anchorage, voiced their support for the
confirmations of Ann Ruggles and Mr. Van Ballenberghe because they
bring a much needed voice to the board at a time when the public is
becoming increasingly frustrated with the wildlife policy process.
He said their prior experience on the board and professionals
backgrounds in biology are qualities that will serve them well on
this board. He stressed that while the Alliance supports Ms.
Ruggles and Mr. Van Ballenberghe, they by no means agree with them
all of the time, and they respect them both for being fair and open
to public input.
Number 155
DICK BISHOP , Executive Director, Alaska Outdoor Council, stated
that based on their members' experience in working with Ann Ruggles
and Mr. Van Ballenberghe, they do not believe the best interests of
sound conservation and fair allocation of Alaska's game resources
will be served. He said the Board of Game is in a very important
position to manage for the interests of all users, but in
particular, the Alaska Outdoor Council's concern is the interests
of hunters, trappers, and other consumptive users. He asserted
that those who are generally opposed to hunting, opposed to
management, opposed to trapping, who seek to limit those activities
in any possible way, either on a large or small scale, are
generally supporting the confirmations of Ms. Ruggles and Mr. Van
Ballenberghe.
SARAH HANNAN , a lifelong Alaskan and a lifelong hunter, said the
policy and purpose of the Board of Game is to make decisions that
are complex, and it is most important in a board process to have a
diversity of views. She said the best policy is made when you have
two adversaries talking it out. She urged that the committee take
into consideration the credentials of Ms. Ruggles and Mr. Van
Ballenberghe.
JOEL BENNETT of Juneau voiced his support for the confirmations of
Ms. Ruggles, Mr. Van Ballenberghe and Mr. Roczicka. He knows Ms.
Ruggles and Mr. Van Ballenberghe personally, and he believes they
bring a great measure of competence, experience and diversity to
the board. He believes that all three appointees feel strongly
that hunting is a critical and justified activity in this state,
one to be both respected and continued responsibly in every way.
He also believes it is important to have professionals sitting on
the board.
MIKE TINKER , testifying from Fairbanks, stated his opposition to
the confirmations of Ms. Ruggles and Mr. Van Ballenberghe, because
both of them are not flexible on their philosophy. He said one of
the things the game board has to do is to take the new regulatory
processes that are coming, consider the difficult issues, and find
some middle ground, and he doesn't see enough flexibility in these
two individuals to do that.
Number 356
VIC VAN BALLENBERGHE , responding to the testimony on his
appointment to the Board of Game, said he doesn't believe he has
spoken personally to any of the people that came forth to testify
against him. He said they have picked out a few choice examples of
things that they perceived were done on the board in their
disfavor. He said there are many examples of where the Board of
Game provided hunting opportunities for hunters, and very few
examples where that was not the case. He added that to pick out a
few of those examples and emphasize those is a distortion of what
the board actually did.
SENATOR TAYLOR asked if it was true that at a recent meeting of the
Board of Game, they enacted a regulation which provides that if an
individual shoots a black bear, he will now be required to eat
various portions of the black bear. MR. VAN BALLENBERGHE
acknowledged that was correct, but he pointed out that he voted
against it. He also clarified that it wasn't to eat, it was to
salvage portions of the black bear. He said he think it grew from
the whole issue of baiting bears and the perception that there was
black bear meat going to waste and it should be salvaged.
Number 520
There being no further testimony on the Board of Game appointees,
CHAIRMAN LEMAN closed the confirmation hearing.
CSHB 388(RES) am OIL & GAS LEASING/ BEST INT. FINDINGS
CHAIRMAN LEMAN brought CSHB 388(RES) am before the committee as the
next order of business.
REPRESENTATIVE ROKEBERG , prime sponsor of HB 388, explained the
goal of the legislation is to make more land available to the
petroleum industry for leasing and a more predictable schedule. He
said the additional acreage will provide a situation where there is
more competition in the state and potentially invite smaller
independents and other such explorers into the state of Alaska.
Representative Rokeberg pointed out that by amending this existing
statute for exempt and reoffered sales, there will be no delay in
a current reschedule, as well as a zero fiscal impact.
The legislation will extend the life of a best interest finding
from five years to 10 years. It also establishes a clear and
streamlined process for approval of what is called a supplement,
based only on substantial new information to an existing best
interest finding, while also including a reasonable time period for
public notice and comments.
Representative Rokeberg pointed out CSHB 388(RES) am passed out of
the House unanimously, and the bill itself was a consensus bill
developed with the Alaska Oil & Gas Association (AOGA) and the
administration.
PAT FOLEY , Chairman, Lands, Exploration & Operations Committee,
Alaska Oil & Gas Association, stated their support for CSHB
388(RES) am. He said AOGA encourages annual areawide leasing in
areas of the state where competitive leases are regularly offered,
and this legislation will provide the vehicle for the state to
institute annual areawide lease sales.
Mr. Foley pointed out that previous versions of HB 388 had included
the term "areawide" to describe the intent of the legislation.
However, the bill was amended on the floor of the House to remove
references to areawide lease sales. AOGA believes it would
reinforce the state's intent to institute annual areawide leasing
by amending Section 2 to insert the word "areawide" and to remove
the requirement to annually offer AS 38.05.180(d) exempt lands. He
said that on one hand, the bill will have the same legal effect
with or without these specific words, but on the other hand, the
words "areawide lease sale" are a term of art used by the industry
to differentiate these lease sales from nomination-based lease
sales. Including the term "areawide" could help non-Alaska
operators understand the important opportunity this bill
represents.
Concluding his testimony, Mr. Foley said AOGA strongly supports the
bill with or without the suggested amendment.
BILL STAMPS , representing the Alaska Support Industry Alliance and
testifying from Kenai, voiced their support for implementation of
a regular and dependable lease sale program for all of Alaska. It
needs to be a lease program that is economical and functional, and
one that best serves the needs of the state of Alaska and its
residents, and one that perspective bidding companies that provide
so much of Alaska's economic base can rely on. The Alliance
believes that CSHB 388(RES) am is such a bill and they support its
passage. The Alliance also supports the incorporation of AOGA's
suggested amendment.
TAPE 96-61, SIDE A
Number 001
GEORGE FINDLING , representing ARCO Alasksa, Inc., and testifying
from Anchorage in support of AOGA's position, said as a part of a
concerted industry effort with the administration, they have been
working on a mechanism to provide endorsement of an areawide lease
sale concept and to provide that the scope and usefulness of best
interest findings be expanded, to change and streamline the
existing process and reduce the number of best interest findings
the Division of Oil & Gas must prepare, yet does not limit the
public comments on the best interest findings. He stated ARCO's
support for the provisions contained in CSHB 388(RES) am.
KEN BOYD , Director, Division of Oil & Gas, Department of Natural
Resources, voiced his support for CSHB 388(RES) am, and expressed
his appreciation for the process that went into putting the bill
together, which he thinks works for everybody. He said they have
every intention of moving forward with the reoffering sales.
However, he is not in support of AOGA's proposed amendment, because
he does not think it is useful to put words like "areawide leasing"
into statute, but he added that he has no strong opinion on it.
Number 078
SENATOR PEARCE asked what the proposed time frame would be for
offering these areawide, and how long he thinks it would take for
the division to be ready with the first set of best interest
findings. MR. BOYD responded that they are on that path now. Sale
87 will be held in 1998, and it will be the first areawide lease
sale. Right now, through the finding process and through SB 308,
which passed a couple of years ago, they are building a foundation
of findings they need to make this program work. If they can build
the findings successfully and get a good foundation, they are ready
to go.
SENATOR PEARCE asked Mr. Boyd if the Coastal Policy Council has
taken a position on this legislation. MR. BOYD answered that to
his knowledge, they had not. SENATOR PEARCE predicted that they
are not going to like it.
KEVIN TABLER , Land Manager, Union Oil Co., testifying from
Anchorage, said UNOCAL has followed this piece of legislation
through its passage in the House and is encouraged by its progress
to date. He said as a member of the Alaska Oil & Gas Association,
UNOCAL has participated on various committees which have reviewed
the committee substitute, and they would lend their support to the
comments made by Mr. Foley. He stated UNOCAL encourages passage of
CSHB 388(RES) am with inclusion of the AOGA amendment.
Number 214
SENATOR PEARCE moved adoption of the following amendment to CSHB
388(RES) am:
Amendment No. 1
Page 2: Delete lines 18 through 21 and replace with the following
language:
"(B) to offer acreage for oil and gas lease, specifically
including
(i) state acreage that has been the subject of a best
interest finding at annual areawide lease sales; and"
Hearing no objection, the Chairman stated the amendment was
adopted.
SENATOR PEARCE moved SCS CSHB 388(RES) and a new fiscal note to be
prepared by the department be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
There being no further business to come before the committee, the
meeting was adjourned at 5:30 p.m.
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